Presentation by the Fauquier County Public Schools on a Request
to Build the New High School and Waive the Debt Referendum
Requirement

Topic Description:

On April 29, 2004, the Fauquier County School Board adopted the
attached Resolution
to build a high school for Fauquier County students. The
Resolution requests the Board of Supervisors to (1) waive the
requirement for the debt referendum; (2) authorize the
construction of a new high school; and (3) approve the high
school project in the Fiscal Year 2006 Capital Improvements
Program (CIP).

The Fiscal Year 2004 CIP includes an appropriation in the amount
of $2,375,084. The County has agreed to match this funding,
which provides a total of $4,750,168 in cash funding available
to begin the project. Additional funding to begin construction
has not been approved. Based on a March 12, 2004 report from
McDonough Bolyard Peck Construction Engineering, the preliminary
cost estimate for a new high school is $46,269,093, expressed in
2005 dollars (Executive
Summary attached).

The School Board has established a need for a third high school
with a recommended opening date of August 2007. To achieve this
goal, the project needs to begin without delay.

At the request of the County, the Countyís Financial Advisor,
Gary Ometer with BB&T Capital Markets, has provided the attached memorandum
on the financial implications of the referendum. He
acknowledges that the State does not require a referendum for
projects financed through the Virginia Public School Authority (VPSA).
VPSA specifically addresses the issue of a failed referendum in
its policies. In the event of the failed referendum, VPSA will
only consider the project for inclusion in the bond pool if (1)
the Board of Supervisors and the School Board unanimously
approve a resolution stating the project is essential, (2) the
Board of Supervisors and School Board approve a resolution by
majority vote that the project is essential and at least two
years have passed since the failed referendum, or (3) the
Virginia Department of Education determines an emergency exists
for the project. The financial advisor also outlines potential
benefits from a successful bond referendum in the attached
memorandum.

Requested Action of the Board of Supervisors:

Hold a work session.

Financial Impacts Analysis:

Cash funding is available to begin this project in the amount of
$4,750,168. Additional cash funding will be evaluated. Debt
service for the balance of the project costs would be incurred
beginning in Fiscal Year 2007.

Identify any other Departments, Organizations or Individuals
that would be affected by this request: